WTI: Head & Shoulders Could Trigger Drop to $67.48

WTICOUSD

On the 120-minute timeframe, WTI Crude Oil has shown a notable bearish setup. After the formation of the bearish alt-Bat pattern at $71.14, the price dropped to $69.22, where a new fractal support was established. This level reinforces a previously used support zone, which is crucial for the next possible price pattern.

With this support reinforcement, there is a potential for the formation of a head and shoulders pattern, with the neckline at $69.22. It’s important to note that the pattern will only be validated if the price breaks below this fractal support. If validated, the pattern could trigger a decline towards the 200% Fibonacci extension level at $67.48.

Key Takeaways for WTI Crude Oil:

• Bearish alt-Bat pattern formed at $71.14.
  
• Price dropped to $69.22, establishing a new fractal support.
  
• A potential head and shoulders pattern is forming, with support at $69.22 acting as the neckline.
  
• Break below $69.22 would validate the head and shoulders pattern.
  
• If validated, the price could fall to $67.48, aligning with the 200% Fibonacci extension level.